Refiners'Options to Meet IMO 2020 Low-sulfur Bunker Fuel Mandate-Part 1

摘要

Since Jan.2015,International Maritime Organization(IMO)rules require ships travelling within 200 miles(320 kilometers)of Emission Control Areas(ECAs)in North America,the North Sea,the Baltic Sea,and the US Caribbean,including Puerto Rico and the US Virgin Islands,to use fuel with a maximum sulfur content of 0.1%,down from the current cap of 3.5%.Demand for 1.0%-sulfur fuel oil has been substantially reduced-to the point where the remaining material is blended in with the high-sulfur(3.5%)bunker pool.During a meeting in London,the IMO stated on Oct.27,2016,that it will lower the sulfur content in global bunker-fuel from 3.5% to 0.5% beginning in 2020.The move is expected to cause upheaval in the bunker market,which consumes 3.0MM b/d of high-sulfur residual fuel oil,and add upwards of $35-40B in compliance costs to shipowners.